The agreements cover two exploration blocks in the South China Sea's Pearl River Mouth Basin, designated 15/10 and 15/28, and give Chevron China 100% exploration interests in each. The company will operate the exploration operations going forward, covering a total surface area of approximately 2,233 square miles, with water depths from 50 to 100 meters.
"Exploration of these blocks builds on our strategy to grow our business across the Asia Pacific region, where we are developing LNG, deepwater, shale and sour gas resources," Chevron VP George Kirkland is quoted by the company as saying.
CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the blocks.
As of this writing, shares of Chevron are up 0.3% at $113.75. CNOOC shares are down 0.5% at $207.00.